v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes
Income tax provision (benefit) for the years ended December 31, consists of the following (in thousands): 
202520242023
Current:
Federal$12,205 $66,505 $125,875 
State9,849 8,368 22,340 
Foreign23,380 23,366 53,674 
45,434 98,239 201,889 
Deferred:
Federal38,947 (27,938)(18,781)
State37,665 7,511 (6,209)
Foreign7,531 (5,849)(5,069)
84,143 (26,276)(30,059)
$129,577 $71,963 $171,830 
Schedule of Components of Income Before Taxes
The components of Income before income taxes for the years ended December 31, were as follows (in thousands): 
202520242023
Domestic$281,923 $369,870 $614,713 
Foreign176,808 147,268 252,163 
$458,731 $517,138 $866,876 
Schedule of Provision for Income Tax Rate to Statutory Rate Reconciliation
The table below provides the updated requirements of ASU 2023-09 for 2025 related to the Company's effective tax rate. See Note 1 Summary of Significant Accounting Policies — Accounting Standards Recently Adopted section for additional details on the adoption of ASU 2023-09.
Income tax provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate for the years ended December 31, due to the following items (in thousands):
2025
United states statutory tax rate
$96,334 21.0%
State and local income taxes, net of federal income tax effect(a)
29,913 6.5 
Foreign tax effects
China
Valuation allowance adjustments
5,421 1.2 
Other
(184)— 
Thailand
BOI
(15,120)(3.3)
Global minimum tax
8,838 1.9 
Other
(2,658)(0.6)
Other foreign jurisdictions
147 — 
Effect of changes in tax laws or rates enacted in the current period
— — 
Effect of cross-border tax laws
Global intangible low-taxed income
6,679 1.5 
Other
761 0.2 
Tax credits
Foreign tax credit
(10,952)(2.4)
Research and development credit
(9,597)(2.1)
Changes in valuation allowances
15,956 3.5 
Nontaxable or nondeductible items
Nontaxable dividends
(12,285)(2.7)
Other
4,392 1.0 
Changes in unrecognized tax benefits
4,978 1.1 
Other adjustments
Intercompany profit in inventory
7,243 1.6 
Other
(289)(0.2)
Effective tax rate
$129,577 28.2%
(a)State taxes in Wisconsin made up the majority (greater than 50%) of the tax effect in this category.
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows: 
20242023
Provision at statutory rate
$108,599 $182,044 
State taxes, net of federal benefit10,003 21,659 
Foreign rate differential2,196 7,887 
Foreign derived intangible income(1,744)(8,669)
Research and development credit(20,706)(23,130)
Unrecognized tax benefits including interest and penalties(2,026)(9,210)
Valuation allowance adjustments10,797 7,345 
State credits(4,526)(8,035)
Global intangible low-taxed income2,605 474 
Return to provision adjustments
(5,421)1,057 
Executive compensation limitation 5,404 8,712 
Other foreign inclusions(13,601)1,563 
Tax incentives
(16,476)(12,996)
Other(3,141)3,129 
Income tax provision
$71,963 $171,830 
Schedule of Principal Components of the Company's Deferred Tax Assets and Liabilities
The principal components of the Company’s deferred income tax assets and liabilities as of December 31, include the following (in thousands):
20252024
Deferred income tax assets:
Accruals not yet tax deductible$79,630 $144,331 
Stock compensation9,949 11,779 
Net operating loss and tax credit carryforwards
94,910 82,027 
Amortization of research and experimental costs100,635 100,880 
Other62,299 62,889 
347,423 401,906 
Valuation allowance(94,580)(59,313)
252,843 342,593 
Deferred income tax liabilities:
Depreciation, tax in excess of book(25,879)(51,107)
Pension and postretirement healthcare plan obligations(121,258)(90,589)
Withholding tax(5,246)(15,915)
Other(32,174)(26,045)
(184,557)(183,656)
$68,286 $158,937 
Schedule of Gross Operating Loss Carryforwards
The Company's gross state net operating loss carryforwards were as follows at December 31 (in thousands):
Year of Expiration20252024
2031$238,682 $238,682 
203212 12 
203346 46 
2034107 108 
20351,085 1,085 
203660 60 
2037188 187 
2038824 824 
203911,285 11,285 
204037,679 34,354 
20412,135 2,135 
2042347 347 
2043480 — 
204417,462 — 
20454,277 — 
Indefinite7,280 7,280 
$321,949 $296,405 
Schedule of Changes in Gross Liability for Unrecognized Tax Benefits Excluding Interest and Penalties
The Company recognizes interest and penalties related to unrecognized tax benefits in Income tax provision (benefit). Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows (in thousands): 
20252024
Unrecognized tax benefits, beginning of period$16,179 $18,214 
Increase in unrecognized tax benefits for tax positions taken in a prior period1,822 3,818 
Decrease in unrecognized tax benefits for tax positions taken in a prior period— (3,773)
Increase in unrecognized tax benefits for tax positions taken in the current period1,148 2,473 
Statute lapses(21)(3,800)
Settlements with taxing authorities(971)(753)
Unrecognized tax benefits, end of period$18,157 $16,179 
Schedule of Cash Paid for Income Taxes
The following is a schedule of cash paid for income taxes (in thousands):
202520242023
Jurisdiction
U.S. Federal
$9,686 $— $— 
State:
Pennsylvania
2,168 — — 
State - Other
10,622 — — 
Foreign:
Germany
2,641 — — 
Singapore
2,485 — — 
Thailand
7,815 — — 
Foreign - Other
3,941 — — 
Total cash paid for income taxes (net of refunds)
$39,358 $— $— 
Total cash paid for income taxes (prior to ASU 2023-09)
$— $111,117 $237,658 
Operating Cash Flow – The reconciliation of Net income to Net cash provided by operating activities for the years ended December 31, was as follows (in thousands):
202520242023
Cash flows from operating activities:
Net income $329,154 $445,175 $695,046 
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization172,371 160,673 158,112 
Amortization of deferred loan origination costs45,165 70,745 85,018 
Amortization of financing origination fees13,552 13,963 13,208 
Income related to long-term employee benefits
(55,195)(54,008)(67,624)
Employee benefit plan contributions and payments(6,835)(5,078)(5,736)
Stock compensation expense31,749 49,005 82,901 
Net change in wholesale finance receivables related to sales64,461 46,884 (387,743)
Provision for credit losses(191,392)247,225 227,158 
Collections from finance receivables held for sale28,979 — — 
Proceeds from sale of finance receivables held for sale
552,670 — — 
Originations and purchases of finance receivables held for sale
(844,232)— — 
Gain on sale of securitization beneficial interests(27,867)— — 
Loss on sale of finance receivables
11,378 — — 
Loss on debt extinguishment72,630 — — 
Deferred income taxes84,143 (26,276)(30,059)
Other, net33,174 17,070 (39,713)
Changes in current assets and liabilities:
Accounts receivable, net32,646 19,778 (11,443)
Finance receivables – accrued interest and other43,786 36 (339)
Inventories, net47,577 164,609 21,257 
Accounts payable and accrued liabilities125,556 (55,436)28,570 
Other current assets5,452 (30,532)(13,726)
239,768 618,658 59,841 
Net cash provided by operating activities$568,922 $1,063,833 $754,887 
Cash paid during the years ended December 31, for interest and income taxes was as follows (in thousands):
202520242023
Interest$330,823 $358,996 $290,467 
Income taxes$39,358 $111,117 $237,658